Treehouse Foods – a producer of frozen waffles, pancakes and dough – revealed recently that it has entered a definitive agreement to sell the company’s Snacks Division to Atlas Holdings. Atlas owns and operates 19 manufacturing and distribution businesses, which collectively employ more than 17,000 associates at over 150 facilities worldwide. Atlas has agreed to pay USD90m for the Division, subject to certain post-closing adjustments.
TreeHouse projected the Snacks Division to generate net sales of approximately USD670m in 2019. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2019. TreeHouse plans to update its full-year guidance to reflect this transaction in its second-quarter earnings announcement.
The Snacks Division, with more than 800 employees, is one of the largest manufacturers and distributors of private label healthy snacks to retail customers in North America.
The Division operates three plants, located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama. A fourth plant, in Minneapolis, Minnesota, is scheduled to close by the end of the third quarter as previously announced. The Minneapolis plant and the manufacturing-related employees located there are not included in this transaction. Both companies are committed to a smooth transition for employees, customers, and consumers.
“The sale of the Snacks Division is a key step in optimizing TreeHouse’s overall product portfolio. It is the culmination of TreeHouse’s strategic review of its Snacks business. This transaction allows the Snacks Division to unlock its potential and serve its customers even better under Atlas’ ownership. We are grateful for the hard work put forth by the Snacks team during these last several years,” said Steve Oakland, CEO, and President of TreeHouse Foods.